BrokerageIndustry News

6 percent is dead

Perspective: The fatal flaw of percentage-based commissions
Published on Feb 16, 2009

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by CareyBot

Yes, the day of the standardization of 6 percent commission is dead. How long will it take for the industry to realize this? That is the new question.

Now, don't get me wrong, I am not attacking the industry, commission dollar amounts or high-paid all-star agents (many who are worth every penny). I am simply talking about the "percentage-based commission structure."

If a top real estate broker in New York City is on average making $50,000 per transaction, I am not staking the claim that they should not be making $50,000 per transaction -- they may, in fact, be worth it -- possibly even worth more.

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